Ann: Operations Update, page-101

Hi Spinefx

they opened up surface wellhead choke valve so much that the pressure differential between fracced shale and reservoir pipe was large enough to create a bottleneck.

When you think about this very low viscosity gas that as been in the shale for millions of years, then think about much higher viscosity water in place of gas that will have an effect.

Looking at the phase diagrams I emailed (not sure how to upload, perhaps new member restrictions) you it can be seen that large pressure reduction of around 2500psi at reservoir makes this gas cross the phase envelopes bubble point converting the gas to volatile oil. Oil in the fractures is my guess as oil viscosity is much higher than gas.

88E will flow test this well to have the reservoir gas convert to our volatile oil ideally inside the pipe and not reservoir. This will be achieved by controlling well delivery rate.